The Global Alliance for Responsible Media, a voluntary initiative established in 2019 to enhance digital safety across various industries, is shutting down operations in the wake of an antitrust lawsuit filed by Elon Musk’s social media company, X Corp., formerly known as Twitter.
The lawsuit, filed in the federal District Court for the Northern District of Texas, alleges that Global Alliance for Responsible Media (GARM) orchestrated a boycott that cost X Corp. billions of dollars in advertising revenue, reported The Texan.
The World Federation of Advertisers (WFA), which managed the GARM initiative, announced the decision to close GARM just days after the lawsuit was filed.
The impact of GARM’s closure on the ongoing lawsuit remains uncertain. However, WFA said it was committed to defending GARM’s actions in court. According to Business Insider, WFA described the decision as a “difficult” one, influenced by GARM’s not-for-profit status and limited resources.
GARM had positioned itself as a neutral and voluntary organization. However, X Corp.’s lawsuit claims that GARM’s actions constituted a deliberate conspiracy to undermine X by coaxing its members to participate in a coordinated advertising boycott.
In response to the announcement, X Corp. CEO Linda Yaccarino expressed her approval of the lawsuit via social media, “No small group should be able to monopolize what gets monetized. This is an important acknowledgment and a necessary step in the right direction. I am hopeful that it means ecosystem-wide reform is coming.”
Additionally, the Florida-based video-sharing platform Rumble has announced its intention to join X Corp. in filing similar litigation against WFA and GARM.
Rumble’s lawsuit argues, “The brand safety standards set by advertisers and their ad agencies should succeed or fail in the marketplace on their own merits and not through the coercive exercise of market power.”
Both X Corp. and Rumble are seeking a legal declaration that GARM’s actions are unlawful. They are also pursuing monetary damages.
For now, the legal proceedings continue in federal court. The Dallas Express will update readers on the outcome of Musk’s new lawsuit.